Nu Holdings (NU - N)

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This summary was created by AI, based on 1 opinions in the last 12 months.

Nu Holdings has garnered attention with its focus on digital banking, aiming to reshape financial services for a tech-savvy audience. However, expert reviews indicate a mix of skepticism regarding this approach, suggesting that the company's emphasis on digital banking may not resonate as positively as anticipated. One review pointedly reflects a discontent with this strategy, implying that the alignment with market needs and consumer preferences could be miscalculated. As the landscape of financial services evolves, Nu Holdings may need to reassess its value propositions and consider alternative avenues for growth to enhance its appeal and competitive edge. Overall, the trajectory ahead could be challenging unless the company pivots effectively to address these concerns.

Consensus
Mixed
Valuation
Undervalued

Most recent Opinions go here

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Part of our caution is that it is a Brazil company and we do not follow it. Looking at a set of peers (via Bloomberg) it is not undervalued compared with peers, with a P/E ratio of 25X vs 16x to 20x for most peers. It is, however, growing fast, with EPS expected to double from 2024 to 2026 estimates. The last quarter was good. Nubank enters 2H with positive momentum, but macro headwinds in Brazil may test the sustainability of its recent acceleration. In 2Q, it reported a solid beat, with ROE of 28%, driven by net interest margin NIM recovery and a rebound in risk-adjusted NIM. This came alongside robust 40% forex-neutral loan growth and fee expansion. Asset quality held up well, with early delinquencies improving 30 bps and 90+ NPLs up just 10 bps, though Stage 3 formation ticked higher. Total loan growth was sequentially flat in FX-neutral terms, yet credit card loans and lending portfolios accelerated vs. 2Q24. Cost discipline is solid despite a slight deterioration in the efficiency ratio to 28.3% due to marketing and RSUs. Overall, 2Q marked a recovery in key profitability metrics, but questions remain about growth durability as economic conditions soften.  We think it is decent and the momentum has improved markedly, but we would not call it hugely compelling.
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DON'T BUY

He was wrong. He thought digital banking was the way to go.

SELL

This has run up too much so too risky in this uncertain market.

Unspecified
It is a Brazilian digital banker so it is in the Fintech space. It is growing but how are they managing it. It has stopped releasing information so be careful.
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Nu Holdings(NU - N) Rating

Ranking : 3 out of 5

Star iconStar iconStar iconStar empty iconStar empty icon

Bullish - Buy Signals / Votes : 0

Neutral - Hold Signals / Votes : 0

Bearish - Sell Signals / Votes : 1

Total Signals / Votes : 1

Stockchase rating for Nu Holdings is calculated according to the stock experts' signals. A high score means experts mostly recommend to buy the stock while a low score means experts mostly recommend to sell the stock.

Nu Holdings(NU - N) Frequently Asked Questions

What is Nu Holdings stock symbol?

Nu Holdings is a OTC stock, trading under the symbol NU - N on the (). It is usually referred to as or NU - N

Is Nu Holdings a buy or a sell?

In the last year, 1 stock analyst published opinions about NU - N. 0 analysts recommended to BUY the stock. 1 analyst recommended to SELL the stock. The latest stock analyst recommendation is . Read the latest stock experts' ratings for Nu Holdings.

Is Nu Holdings a good investment or a top pick?

Nu Holdings was never recommended as a Top Pick on Stockchase. Read the latest stock experts ratings for Nu Holdings.

Why is Nu Holdings stock dropping?

Earnings reports or recent company news can cause the stock price to drop. Read stock experts’ recommendations for help on deciding if you should buy, sell or hold the stock.

Is Nu Holdings worth watching?

1 stock analyst on Stockchase covered Nu Holdings In the last year. It is a trending stock that is worth watching.

What is Nu Holdings stock price?

On , Nu Holdings (NU - N) stock closed at a price of $.